NMHC survey shows softening apartment market

WASHINGTON, D.C. — The nation’s apartment industry has softened somewhat in the midst of a slowing economy. That’s the conclusion of the Washington, D.C.-based National Multi Housing Council’s (NMHC) recent quarterly survey of multifamily executives.

Only 1% of the respondents described the markets in which they operate as tighter than three months ago. "Tight" markets are those with low vacancy rates and high rent increases. Meanwhile, 83% said the markets in which they operate are looser than three months ago, and 16% stated that their markets are unchanged.

Also, 66% of those surveyed said the sales volume in their markets was slower than three months ago, while only 5% said it was higher and 28% said volume was unchanged.

The survey also addressed the availability of both equity and debt financing. According to the results, 42% said equity financing was less available than three months ago, another 42% said availability hadn’t changed and 7% said it was more available. Meanwhile, 69% of those surveyed said now is a better time to borrow than three months ago, 7% said now is a worse time to borrow, and 21% said conditions are unchanged.